Starbucks Announces Major Restructuring with Hundreds of Store Closures and 900 Job Cuts
Starbucks is implementing a $1 billion restructuring plan, closing hundreds of underperforming stores and laying off 900 nonretail employees to address declining sales and improve financial stability.
Starbucks to shutter stores, lay off employees in restructuring plan
Washington Examiner
Starbucks to cut 900 jobs and close underperforming stores
New York Daily News
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Overview
- Starbucks is undertaking a significant $1 billion restructuring plan, led by CEO Brian Niccol, to revitalize operations and address six consecutive quarters of declining sales.
- As part of this plan, the company will close hundreds of underperforming stores across the U.S. and Canada and lay off approximately 900 nonretail employees.
- Affected nonretail employees will be offered severance packages and potential transfers, though Starbucks Workers United criticized the closures for lacking barista input.
- The restructuring aims to redirect funds towards improving existing stores, including revamping condiment offerings and targeting drink preparation times under four minutes.
- Despite the closures, Starbucks plans to increase its overall North American store count and redesign over 1,000 locations in the coming fiscal years to foster future growth.
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Analysis
Center-leaning sources cover the Starbucks job cuts and store closures with a neutral, factual approach. They consistently report the company's announcements, attributing details to CEO Brian Niccol and regulatory filings. The coverage provides context on Starbucks' "Back to Starbucks" strategy and its stated goals, while also including relevant background on the company's recent challenges, such as declining sales and labor disputes, without editorializing.
"Starbucks plans to cut another 900 corporate jobs and close some of its stores in the U.S. and Canada, as the coffee chain approaches the one-year mark of its turnaround plan."
NPR"Starbucks said it expects to spend $1 billion on the restructuring, including $150 million on employee separation benefits and $850 million related to the physical store closing and the cost of exiting leases."
Chicago Sun-Times"The restructuring is the latest major change from Niccol, who was appointed to run the company just over a year ago."
NBC News"Starbucks will cut about 900 jobs and close its worst performing stores in the US as well as some in the UK as part of a cost-saving restructure, the coffee chain said."
BBC News"The overhaul will cost $1 billion, according to a Thursday regulatory filing."
CBS News"Starbucks is laying off around 900 non-retail employees and closing some U.S. and Canadian stores as it focuses more of its resources on a turnaround."
ABC News"The moves are part of the "Back to Starbucks" strategy, instituted by Niccol, the former Chipotle CEO who left to become Starbucks' chief executive in September 2024."
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FAQ
Starbucks is implementing the restructuring plan to address six consecutive quarters of declining sales and to improve its financial stability by revitalizing operations.
Starbucks will close hundreds of underperforming stores across the U.S. and Canada and lay off approximately 900 nonretail employees as part of the restructuring.
Affected nonretail employees will be offered severance packages and potential transfer opportunities within the company.
Starbucks plans to revamp condiment offerings and improve drink preparation times to under four minutes, while redesigning over 1,000 locations in North America to foster future growth.
Starbucks Workers United criticized the restructuring plan for its lack of barista input and voiced concerns about the impact of store closures on employees and communities.
History
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